Mumbai: The Reserve Bank of India’s (RBI) monetary policy committee has kept the repo rate unchanged at 6.5%. The move comes as the inflation rate is on a consistent decline and the RBI’s belief that the inflation rate will go further south. The inflation in the country is currently at a 18-month low.
The RBI’s monetary policy committee’s decision was expected by most of the analysts, said a report by ANI News.
India has outperformed many other countries, including developed economies, in managing to steer its inflation trajectory quite well, said the report.
Repo rate is the rate at which RBI lends money to commercial banks. It is increased when inflation rate surges. It is. It is done to keep the demand in the economy low so as to suppress the rise in prices.
The report said that the RBI expects GDP growth of 6.5% in FY 2023-24. Various international agencies have forecasted India to be one of the fastest growing economies in 2023-24, supported by robust growth in private consumption and sustained pick-up in private investment.
A report said that the RBI Governor, Shaktikanta Das, observed that the Indian economy and financial sector stood strong and resilient amidst unprecedented global headwinds.